Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Chalfont St Peter. Clearly, the term of lease remaining reduces over time. This is often overlooked and only raises itself as an issue when the residence needs to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Chalfont St Peter have the right to extend the lease for a further 90 years in accordance with statute. You should give due consideration before delaying your Chalfont St Peter lease extension. Putting off that expense now likely increases the price you will eventually have to pay for a lease extension
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Chalfont St Peter leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Matthew, came seriously close to the eighty-year mark with the lease on his one bedroom flat in Chalfont St Peter. Having purchased his flat 19 years previously, the lease term was of minimal interest. Fortunately, he realised he needed to take steps soon on a lease extension. Matthew was able to extend his lease at the eleventh hour last January. Matthew and the freeholder via the managing agents in the end settled on a premium of £5,500 . If he not met the deadline, the sum would have escalated by at least £875.
Last month we were phoned by Dr B Norbert , who completed a one bedroom apartment in Chalfont St Peter in February 2001. The question was if we could approximate the premium would likely be for a ninety year lease extension. Identical properties in Chalfont St Peter with a long lease were in the region of £280,000. The average amount of ground rent was £45 collected yearly. The lease terminated in 2095. Considering the 70 years as a residual term we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.
An example of a Lease Extension case for a Chalfont St Peter premises is Flats 8, 11 and 15 Craigmore Court 46 Murray Road in December 2013. The tribunal held that the price payable by the Applicant tenant of Flat 8 to acquire an extended lease shall be £26,438 plus £1 to the intermediate lessee . The tribunal held that the price payable by the Applicant tenants of Flat 11 to acquire an extended lease shall be £26,791 plus £1 to the intermediate lessee. The tribunal held that the price payable by the Applicant tenant of Flat 15 to acquire an extended lease shall be £26,638 plus £1 to the intermediate lessee . This case affected 3 flats. The unexpired lease term was 71 years.